European Union negotiators have reached a significant milestone in the regulation of artificial intelligence (AI) by signing a political agreement for the Artificial Intelligence Act. This agreement, hailed as the world's first comprehensive AI rules, will pave the way for legal oversight of technology used in popular generative AI services like ChatGPT.

The negotiations between the European Parliament and the bloc's 27 member countries were not without challenges. Differences on generative AI and police use of facial recognition posed major hurdles. However, negotiators managed to overcome these differences and reach a tentative political agreement for the AI Act. European Commissioner Thierry Breton took to Twitter to announce the breakthrough, stating, "Negotiators from the European Parliament and the bloc's 27 member countries have finally reached a political agreement on the Artificial Intelligence Act!"

The EU has been at the forefront of the global race to establish AI regulations, having unveiled the first draft of its rulebook in 2021. However, the recent surge in generative AI necessitated updates to the proposal. Generative AI systems, such as OpenAI's ChatGPT, have gained widespread popularity due to their ability to create text, photos, and songs. Nevertheless, concerns about job displacement, privacy infringement, and copyright protection have also risen.

While the EU has taken the lead in AI regulation, other global players like the US, UK, China, and the G7 have also formulated their own proposals. However, they are still playing catch-up with Europe in this regard.

Although officials have provided few details about the contents of the eventual law, it is expected to take effect no earlier than 2025. The AI Act was initially designed to address the risks associated with specific AI functions based on their level of risk. However, politicians pushed to expand its scope to encompass foundation models, which are advanced systems that underpin general-purpose AI services like ChatGPT and Google's Bard chatbot.

One of the most contentious issues during the negotiations was the use of AI-powered facial recognition surveillance systems. European politicians called for a complete ban on public use of such systems due to privacy concerns. However, member country governments argued for exemptions to allow law enforcement to utilize these systems in tackling serious crimes like child sexual exploitation and terrorist attacks. Ultimately, negotiators reached a compromise on this issue after intense bargaining.

While the AI Act's political agreement marks a significant step forward, it still requires approval from the European Parliament's 705 politicians before the upcoming EU-wide elections next year. However, this vote is expected to be a formality.

The AI Act aims to address the potential dangers posed by AI technology by providing legal oversight and regulation. It seeks to strike a balance between harnessing the benefits of AI innovation and safeguarding against its potential risks. By establishing clear rules for the use of AI, the EU aims to ensure the responsible development and deployment of AI systems within its member countries.